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Erik, If you plan on going out to 600 yards, get the 20 inch barrel no question. You will appreciate it at the longer than 400 yard marker Sir.
I say pick the one you like and never second guess yourself. very few people can shoot good enough to tell the difference between the 16.5 and the 20 inch barrels you could also get a great rifle in either are a littles great rifle due to the variations in mass produced rifles in my opinion this 22 inch gun has the most potential accuracy with the features that it comes with https://www.budsgunshop.com/catalog/product_info.php/products_id/90813/remington+84374+700vtr+4%2b1+223rem+22%22+fde
Erik - One thing for sure, your scope is more important, overall, than the barrel length.